Oil drops 4% on weak U.S. gasoline demand
Oil prices dropped Wednesday after U.S. inventory figures showed demand weakening for refined products as global COVID-19 cases spiked.
Brent crude futures were at $41.64 a barrel, down $1.51, or 3.5%. West Texas Intermediate (WTI) crude futures settled 4%, or $1.67, lower at $40.03. Both benchmarks rose in the previous session.
Crude inventories fell by 1 million barrels in the week to Oct. 16 to 488.1 million barrels, while gasoline stocks rose in another weak showing for fuel demand.
Overall product supplied, a proxy for demand, remained down 13% on the year and over the past four weeks when compared with the year-ago period.
Reference: CNBC